GM to invest in three U.S. engine plants

by Jil - February 18, 2010

Detroit, Michigan – General Motors will invest more than US$494 million and create nearly 550 jobs in three U.S. plants to produce the next-generation Ecotec engine.

The plants are in Tonawanda, New York; Defiance, Ohio; and Bay City, Michigan. Tonawanda will receive $425 million to bring it to a capacity of 370,000 engines per year, adding about 470 jobs. Defiance will receive $59 million to support precision sand cast blocks to a capacity of 188,000 units annually, adding 80 jobs, while Bay City’s $10.5 million investment will bring new connecting rod production to the plant, creating about 15 jobs. The investments include facility renovation, new machinery, and new equipment and special tooling.

“GM is transforming its product portfolio to reduce fuel consumption and emissions, and the next-generation Ecotec engine is an integral part of that transformation,” said Denise Johnson, vice-president of labour relations. “The investment in state-of-the-art, four-cylinder engines is another example of GM’s commitment to replace larger-displacement engines with more compact, advanced four-cylinder engines that optimize fuel savings and performance. We look forward to working with our union partners at these three plants to make this investment a success.”